Investment banking giant Goldman Sachs has released a new survey indicating that the two biggest challenges confronting new and small businesses are trying to find qualified workers and dealing with often-complex government regulations.
Some 55 percent of respondents said they were either somewhat or not at all up to snuff on regulations and laws affecting their businesses. Said the report: “On average, respondents spent six hours per week managing and complying with regulations—the equivalent of nearly an entire day each week.”
The report, part of the investment firm’s 10,000 Small Businesses program, also indicates continued support for the Tax Cuts and Jobs Act of 2017, as well as the creation of higher local minimum wage standards above the current federal minimum wage.
A survey of nearly 22,300 small businesses, the Goldman Sachs report reveals that while an overwhelming majority of such companies favored a higher local minimum wage, some 65 percent also felt they would be “negatively impacted by an increase.”
Survey respondents were equally generous on the question of healthcare benefits for their employees, with a majority saying they currently provide some form of coverage.
Touching on the sometimes precarious nature of getting a new small business off the ground, a solid 80 percent of respondents said that they relied on personal finances to start their business, with nearly half indicating that they continued to use their own money to grow those businesses.
“Successfully securing external capital is a greater challenge for business owners of color who were more likely to apply for funding than white business owners, but two times more likely to receive no funding at all,” said a Goldman Sachs press release announcing the survey’s results.
The survey, done in conjunction with Babson College of Wellesley, Massachusetts, also underlines a need to “continue dedicating resources to small businesses, while fostering greater knowledge-sharing and dialogue between small business owners, capital providers, and policymakers to unlock greater economic potential.”
Goldman Sach’s 10,000 Small Businesses program was established with the Goldman Sachs Foundation and is dedicated to providing capital and other support services to small and new businesses.
By Garry Boulard
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